Regression:
Regression is a statistical
method that allows us to model the relationship between a dependent variable
and one or more independent variables. The dependent variable is the variable
that we are trying to predict, while the independent variables are the
variables that we believe influence the dependent variable.
Logistics Regression :
Logistic regression is a statistical model
that models the probability of a binary outcome, such as yes or no, based on
prior observations of a data set. It is a supervised learning algorithm, which
means that it learns from a set of labeled data, where the output variable is
the binary variable that we are trying to predict.
Logistic regression models are trained using a
maximum likelihood approach, which means that the model parameters are chosen
to maximize the probability of the observed data. Once trained, logistic
regression models can be used to predict the probability of the output variable
for new values of the input variables.
Logistic regression is a powerful tool that is used
in a wide variety of fields, including finance, marketing, and healthcare. For
example, logistic regression models can be used to:
- Predict the probability of a customer making a
purchase
- Predict the probability of a patient having a
disease
- Predict the probability of a loan defaulting
- Predict the probability of a student passing
an exam
Here is an example of a simple logistic regression
model:
P(z) = 1 / (1 + e^(-z))
The slope of the logistic regression curve tells us
how much the probability of the output variable changes for a one-unit change
in the independent variable. The y-intercept of the logistic regression curve
tells us the probability of the output variable when the independent variable
is equal to zero.
Here are some examples of how logistic regression
is used in the real world:
- Finance: Logistic regression models can be used to
predict the probability of a loan defaulting, the probability of a
customer churning, or the probability of a stock price going up or down.
- Marketing: Logistic regression models can be used to
predict the probability of a customer clicking on an ad, the probability
of a customer making a purchase, or the probability of a customer
responding to a marketing campaign.
- Healthcare: Logistic regression models can be used
to predict the probability of a patient having a disease, the probability
of a patient responding to a treatment, or the probability of a patient
being readmitted to the hospital.
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